Canada-U.S. Bloghttp://www.canada-usblog.com
Trade Lawyers Cyndee Todgham Cherniak and Susan K. RossWed, 08 Aug 2018 23:14:04 +0000en-UShourly1https://wordpress.org/?v=4.9.8CanadaunitedstatesBloghttps://feedburner.google.comChina 301 List 2 – Effective August 23, 2018 – in US and Chinahttp://www.canada-usblog.com/2018/08/08/china-301-list-2-effective-august-23-2018-in-us-and-china/
http://www.canada-usblog.com/2018/08/08/china-301-list-2-effective-august-23-2018-in-us-and-china/#respondWed, 08 Aug 2018 23:14:04 +0000https://www.canada-usblog.com/?p=6377USTR Lighthizer yesterday published notice that the 25% tariff on goods appearing on List 2 will become effective on August 23, 2018. For those who wonder if filing comments makes a difference, the answer is yes! In his announcement, USTR Lighthizer made the point the list dropped from 284 to 279 tariff items based on... Continue Reading

]]>USTR Lighthizer yesterday published notice that the 25% tariff on goods appearing on List 2 will become effective on August 23, 2018. For those who wonder if filing comments makes a difference, the answer is yes! In his announcement, USTR Lighthizer made the point the list dropped from 284 to 279 tariff items based on testimony and comments which had been received. None of this, of course, helps those companies which are taking a serious financial hit from these tariffs, but then once the official notice is published in the Federal Register, an exclusion request will be included, and so companies should be gearing up to do two things:

File exclusion requests for any products on Lists 1 and 2; and

File comments for those products on List 3.

While those impacted hope for a quick resolution, prudence dictates planning for a List 4. List 1 is discussed in the general press as worth $34 billion. List 2’s goods are worth $16 billion, and List 3’s good are worth $200 billion. Both President Trump and USTR Lighthizer have spoken of imposing additional tariffs on $500 billion worth of goods imported from China. If that happens, any product not on the other lists will end up on List 4.

It continues to be a significant challenge to predict how events will play out. Nonetheless, the Administration has repeatedly said the tariffs seek to change China’s behavior. The fact that China published a proposal on August 3, 2018 to impose its own retaliatory tariffs at 5%, 10%, 20% and 25% without an effective date certainly suggests the back and forth will continue.

The nature of the notice published by USTR also infers the tariffs will continue. The USTR made a point of stating: “Specifically, the Section 301 investigation revealed:

China conducts and supports cyber intrusions into U.S. commercial computer networks to gain unauthorized access to commercially valuable business information.”

It certainly seems this trade war will take a long time to resolve. Do you know on which lists your products appear? Have you filed comments? Any exclusions requests? Which remedy applies to which of your goods? By what deadline must you file? Have you consulted with your trade advisors to know which options are best for your business?

*** China has just announced its own revised List 2 on which an additional 25% tariff will be imposed on goods imported from the U.S. More details can be found here: http://www.mofcom.gov.cn/article/ae/ai/201808/20180802773926.shtml – where both the announcement and the list of affected products were published. This is China’s version of a $16 billion list of products.

For the most current information, please feel free to visit the Tricks of the Trade page of MSK’s blog, which offers updates on these tariffs and other topics relating to international trade.

]]>In the August 7, 2018 Federal Register, U.S. Trade Representative Lighthizer published the latest official timeline for those planning to participate in the China 301 List 3 proceedings. The relevant dates are:

August 13, 2018 – due date for filing requests to be a witness and a summary of expected testimony;

August 20-23, 2018 – public hearing dates;

September 6, 2018 – due date of submission of comments and post-hearing rebuttal comments – this deadline was previously announced as September 5, 2018.

For those planning to participate in this part of the 301 case, these are the dates by which to be governed.

]]>http://www.canada-usblog.com/2018/08/07/china-301-list-3-products-new-schedule-published/feed/0China 301 List 3 Comments Deadline Changedhttp://www.canada-usblog.com/2018/08/02/china-301-list-3-comments-deadline-changed/
http://www.canada-usblog.com/2018/08/02/china-301-list-3-comments-deadline-changed/#respondFri, 03 Aug 2018 00:19:14 +0000https://www.canada-usblog.com/?p=6372There is a new publication which appeared on the USTR website on August 2, 2018. In it, USTR clarifies the August 17, 2018 deadline for comments regarding products on the China 301 List 3 has also been extended to September 5, 2018.

]]>There is a new publication which appeared on the USTR website on August 2, 2018. In it, USTR clarifies the August 17, 2018 deadline for comments regarding products on the China 301 List 3 has also been extended to September 5, 2018.

]]>http://www.canada-usblog.com/2018/08/02/china-301-list-3-comments-deadline-changed/feed/0China 301 List 3 – 25% Duty ???http://www.canada-usblog.com/2018/08/02/china-301-list-3-25-duty/
http://www.canada-usblog.com/2018/08/02/china-301-list-3-25-duty/#respondThu, 02 Aug 2018 17:50:12 +0000https://www.canada-usblog.com/?p=6370On August 1, 2018, USTR Lighthizer issued a press release indicating he was following through with President Trump’s direction and will consider raising the rate of duty from 10% to 25% on those products on China 301 List 3. A formal notice in the Federal Register is expected soon. Mr. Lighthizer also announced the written... Continue Reading

]]>On August 1, 2018, USTR Lighthizer issued a press release indicating he was following through with President Trump’s direction and will consider raising the rate of duty from 10% to 25% on those products on China 301 List 3. A formal notice in the Federal Register is expected soon.

Mr. Lighthizer also announced the written comment period is being extended to September 5, 2018, while the deadline to request to appear at the public hearing is changed to August 13, 2018. The hearing itself is still scheduled for August 20 to 23, 2018.

]]>http://www.canada-usblog.com/2018/08/02/china-301-list-3-25-duty/feed/0China 301 – List 3 Now A Realityhttp://www.canada-usblog.com/2018/07/12/china-301-list-3-now-a-reality/
http://www.canada-usblog.com/2018/07/12/china-301-list-3-now-a-reality/#respondThu, 12 Jul 2018 17:37:39 +0000https://www.canada-usblog.com/?p=6366Late on July 10, 2018, U.S. Trade Representative Lighthizer released a list of the next Chinese-made products targeted for additional duties, this time at a 10% rate and worth about $200 billion. The statement in support of this action can be found here: USTR Statement Supporting China 301 List 3; and the list of affected... Continue Reading

]]>Late on July 10, 2018, U.S. Trade Representative Lighthizer released a list of the next Chinese-made products targeted for additional duties, this time at a 10% rate and worth about $200 billion. The statement in support of this action can be found here: USTR Statement Supporting China 301 List 3; and the list of affected products here: China 301 List 3 Products. As before, the list of products is released in Federal Register pre-publication format.

The dates to keep in mind are as follows:

July 27, 2018: Due date for filing requests to appear and a summary of expected testimony at the public hearing, and for filing pre-hearing submissions;

August 17, 2018: Due date for submission of written comments;

August 20 – 23, 2018: Public hearing;

August 30, 2018: Due date for submission of post-hearing rebuttal comments.

This new List 3 bears Docket No. USTR-2018-0026. If you are considering filing comments, keep in mind USTR wants to hear about “whether imposing increased duties on a particular product would be practicable or effective to obtain elimination of China’s acts, policies, and practices, and whether maintaining or imposing additional duties on a particular product would cause disproportionate economic harm to U.S. interests, including small- or medium-sized businesses and consumers.”

USTR has also published the form to be used by companies seeking exclusion from the China 301 List 1 tariffs, see China 301 Exclusion Request Form. At this point, the objection and reply forms have not been published. Companies considering seeking an exclusion will want to consider the same factors which have been material throughout these proceedings:

1) Can the product be sourced only in China;

2) If other sourcing is available, is there sufficient production;

3) Any exclusion request will have to be based on more than there being a price difference;

]]>http://www.canada-usblog.com/2018/07/12/china-301-list-3-now-a-reality/feed/0China 301 Tariffs Took Effect – What Happens Next?http://www.canada-usblog.com/2018/07/09/china-301-tariffs-took-effect-what-happens-next/
http://www.canada-usblog.com/2018/07/09/china-301-tariffs-took-effect-what-happens-next/#respondMon, 09 Jul 2018 19:10:53 +0000https://www.canada-usblog.com/?p=6360The U.S. Trade Representative (“USTR”) issued a press release on July 6, 2018 in which the process companies can use to seek exclusion from the 25% tariff imposed on the same day on goods from China was announced. The timeline requires all original exclusion requests to be filed by October 9, 2018. Each will be... Continue Reading

]]>The U.S. Trade Representative (“USTR”) issued a press release on July 6, 2018 in which the process companies can use to seek exclusion from the 25% tariff imposed on the same day on goods from China was announced. The timeline requires all original exclusion requests to be filed by October 9, 2018. Each will be reviewed to insure completeness and will then be posted for public review, and 14 days from the date of any posting, all objections are due. No more than 7 days later, any applicant may file its reply. All such submissions are filed through regulations.gov and must reference Docket No. USTR-2018-0025.

The first noticeable difference between the 301 and 232 product exclusion processes is the provision allowing replies. Another notable difference with the 301 exclusion process is trade associations are permitted to submit requests. As before, each request must relate to a specific product and provide the required supporting data and basis for the exclusion request. Details about what exactly is required can be found in the Federal Register notice referenced in the USTR press release. Another notable difference from the 232 process is that for any product where exclusion is granted, that exclusion applies to all imports of that product, not just those of the applicant. Further, all exclusions granted for the proscribed one year period will be retroactive to July 6, 2018, when the tariff was imposed.

Forms are recommended for the request, objection and reply, along with allowing more expansive information to be filed in the form of a public version of any filing and one filed with business proprietary information (“BPI”). Once the official Federal Register notice is published, the trade can expect those forms will be accessible from the regulations.gov portal.

Obviously, USTR learned from the 232 experience and is attempting to streamline the process, and cut the workload. Some of the 232 applications have been ruled upon and, right now, the only sense one gets is if your application was not subject to objection, it was granted. However, if an objection was filed, the application was denied. It will be interesting to see how much impact the ability to file a reply will have on the ultimate determination.

If you have not already done so, now is the time to engage in a few best practices when it comes to dealing with the 301 tariffs (and frankly any others which may be imposed).

Have you confirmed your product is properly classified?

If not, do so, and figure out where it should be classified and how that impacts the duty you have been paying. Should a prior disclosure be filed?

If you are on the 301 list, what options do you have for alternate sourcing? How long will it take for any foreign or U.S. suppliers to ramp up production to meet your needs and those of your competitors?

One of the steps which quickly became clear in the 232 context was any number of American companies who objected to an exclusion request by saying they could produce the product in question and claimed any past attempts to be a supplier to the applicant ended up in a disagreement over price. Quite often, that was a simple answer, and declining to use the American supplier had more to do with any number of objective factors such as quality, quantity, timing, and so on, not just the price.

Should you file for an exclusion? If so, can you distinguish your product from those of your competitors to a significant enough degree that the cost and effort you incur helps you the most, rather than your competitors?

While companies are dealing with implementation of the 25% tariff imposed on first round of Chinese-made goods, List 2 continues through the notice and comment process. That timeline is:

◄ 6-29-18 – Due date to request to appear and submit a summary of testimony and filing pre-hearing submissions.

◄ 7-20-18: Due date for written comments.

◄ 7-24-18: Public hearing

◄ 7-31-2018: Due date for submission of post-hearing rebuttal comments.

Where do you stand in being ready to deal with the 301 tariffs – those imposed and those threatened? Many medium and smaller sized companies are still trying to figure out how they will cope. Make sure to work with your trade compliance consultants to carefully balance the very real need for many to stay in business, with the practical need to stay compliant. Anecdotally, we are hearing about many suppliers who are offering options that do not really work. CBP continues to carefully monitor trade volumes, and any major shift in those patterns will be met with appropriate enforcement action. This is, of course, in the face of the continuing concern about transshipments. Finally, are you prepared for List 3? This would be the list that results from President Trump’s instruction to USTR Lighthizer to identify another $200 billion in Chinese goods on which to impose additional tariffs.

]]>http://www.canada-usblog.com/2018/07/09/china-301-tariffs-took-effect-what-happens-next/feed/0How does the Canada-US trade war affect cross-border shoppers?http://www.canada-usblog.com/2018/07/04/how-does-the-canada-us-trade-war-affect-cross-border-shoppers/
http://www.canada-usblog.com/2018/07/04/how-does-the-canada-us-trade-war-affect-cross-border-shoppers/#respondWed, 04 Jul 2018 18:53:35 +0000https://www.canada-usblog.com/?p=6347On July 1, 2018, Canada imposed countermeasures (that is, 10% duties) on a number of U.S. origin goods. These new duties will apply to goods that are purchased by Canadians who shop in the United States. Canadian cross border shoppers may be asked more questions at the Canada Border Services Agency (“CBSA”) Primary Inspection Booth... Continue Reading

]]>On July 1, 2018, Canada imposed countermeasures (that is, 10% duties) on a number of U.S. origin goods. These new duties will apply to goods that are purchased by Canadians who shop in the United States. Canadian cross border shoppers may be asked more questions at the Canada Border Services Agency (“CBSA”) Primary Inspection Booth and may have to go to the Secondary Inspection Area to undergo a Secondary Examination or pay the cashier. This will add time to a Canadian cross border shoppers return trip to Canada.

What U.S. Origin Goods Are Subject to a 10% Tariff?

Canadian cross border shoppers are likely to purchase groceries or consumer goods. We have prepared a handy cheat sheet (in alphabetical order) of the goods that Canadian cross border shoppers might buy in the United States. The following goods (and potentially similar goods that are classified under the same H.S. code) will be subject to the 10% tariff:

Adhesives

Aerated Water

Aluminum Doors, Windows and Frames

Aluminum Kitchen or Household Articles

Aluminum Nails

Aluminum Scouring Pads

Aluminum Screws

Aluminum Staples

Aluminum Tacks

Aluminum Washers

Ball Point Pens

BBQ Sauce

Bedding

Bobbins

Bourbon

Broth

Candles

Candy – Chocolate Bars or Slabs (filled)

Candy – Chocolate Bars or Slabs (not filled)

Candy – Licorice

Cast Iron Grills

Coffee – Roasted – not decaffeinated

Comforters

Confectionaries

Cooking Chambers

Cucumbers

Dishwashers

Dishwasher Detergent

Dryers

Facial Cleansers

Facial Tissues

Freezers

Fungicides

Gherkins

Glue

Greeting Cards

Face Cleaners

Felt Tipped Pens

Hair Lacquers

Handkerchiefs

Herbicides

Incense

Inflatable Boats

Insecticides

Kitchenware

Laminated Wood

Lawn Mowers

Maple Sugar

Maple Syrup

Markers

Mattresses

Mayonnaise

Mineral Water

Meat-Beef

Meat-Spent Fowl

Mixed Condiments

Mixed Seasonings

Motor Boats

Nail Polish

Nail Polish Remover

Nail Decorations

Nail Cuticle Creams

Orange Juice (not frozen)

Organic surface-active products and preparations for washing the skin

Outboard Motor Boats

Ovens

Paper

Paperboard

Pickles

Pillows

Pizza

Plastic bags and sacks

Plastic household articles

Plastic Hygienic
Articles

Plastic Toilet Articles

Playing Cards

Pleasure Boats

Plywood

Plywood, consisting solely of sheets of wood (other than bamboo), each ply not exceeding 6 mm thickness; Other, with both outer plies of coniferous wood

Postcards

Prepared Meals that contain Beef

Prepared Meals that contain Chicken or Turkey

Printed Cards

Quiche

Quilts

Ranges

Razors

Refrigerators

Room Deodorizers

Room Fresheners

Room Sprays

Salad Dressing

Sauces

Seats with Wooden Frames

Serviettes

Shaving Cream

Shaving Lotion

Sailboats

Sleeping Bags

Soap

Soya Sauce

Spools

Stoves

Strawberry Jam

Table Cloths

Tableware

Tapers/Candles

Tissue Paper

Toilet Paper

Tomato Ketchup

Tomato Sauces

Upholstered Seats with a wooden frame

Veneer Panels

Washing Machines

Water

Water – Flavoured

Water – Sweetened

Water Heaters

Whiskey

Yogurt

In addition, other aluminum goods are subject to a 10% tariff and steel products are subject to a 25% tariff. The complete lists 1, 2 and 3 are posted by the Government of Canada.

Do Canadians have to pay the tariffs?

The answer is yes. Canadian consumers will have to pay the tariffs if they go shopping. In a Canadian resident is outside Canada for less than 24 hours, they must report all goods purchased or acquired outside Canada and must pay all applicable duties and taxes. There is no personal exemption limit (there used to be a limit of $50, but it has not been available for a while). So, if a Canadian resident buys $CDN 100 of U.S. origin chocolate, he/she should expect to pay tariffs of $10 and applicable GST/HST on $CDN 110 (the tariff included converted price).

A Canadian resident who is outside Canada for more than 24 hours and less than 48 hours cannot import alcohol under the personal exemption limit of $200. This would mean the Canadian resident would have to pay duties of 10% on any whiskey or bourbon and all applicable GST/HST on the tariff included converted price.

If a Canadian resident who is outside Canada for more than 24 hours and less than 48 hours returns with more than $CDN worth of goods, full duties (including the countermeasures tariffs) and GST/HST/sales tax must be paid on all the goods.

Do Visitors to Canada have to pay the tariffs?

The answer is yes. A visitor to Canada must declare all goods that he/she importing that the visitor intends to consumer in Canada or leave in Canada (e.g., provide to a Canadian resident as a gift). Gifts valued at $CDN 60 or less each may be brought into Canada duty free and tax free. Gifts worth more than $60 CDN are subject to duty on the excess amount. Alcoholic beverages, tobacco products and advertising materials do not qualify as gifts.

NEXUS

If a NEXUS Card holder fails to declare to the CBSA goods that are subject to the countermeasures tariffs, the CBSA may confiscate their NEXUS Card.

If you require more information, please contact Cyndee Todgham Cherniak at 416-307-4168 or at cyndee@lexsage.com.

]]>http://www.canada-usblog.com/2018/07/04/how-does-the-canada-us-trade-war-affect-cross-border-shoppers/feed/0Canada Retaliateshttp://www.canada-usblog.com/2018/06/30/canada-retaliates/
http://www.canada-usblog.com/2018/06/30/canada-retaliates/#respondSat, 30 Jun 2018 20:08:30 +0000https://www.canada-usblog.com/?p=6343On June 29, 2018, Canada released its list of products on which retaliation will be taken against the 232 steel and aluminum tariffs imposed by the U.S. Table 1 products are subject to a 25% surcharge. While the products listed on Tables 2 and 3 are subject to a 10% surcharge. See Canada 232 Retaliation... Continue Reading

]]>On June 29, 2018, Canada released its list of products on which retaliation will be taken against the 232 steel and aluminum tariffs imposed by the U.S. Table 1 products are subject to a 25% surcharge. While the products listed on Tables 2 and 3 are subject to a 10% surcharge. See Canada 232 Retaliation Lists for further details.

]]>http://www.canada-usblog.com/2018/06/30/canada-retaliates/feed/0To Tariff or Not to Tariff – That Is The Question!http://www.canada-usblog.com/2018/06/26/to-tariff-or-not-to-tariff-that-is-the-question/
http://www.canada-usblog.com/2018/06/26/to-tariff-or-not-to-tariff-that-is-the-question/#respondTue, 26 Jun 2018 15:56:53 +0000https://www.canada-usblog.com/?p=6341In the current tit for tat environment that overhangs international trade, below is an update regarding the 232 tariffs on steel and aluminum, the 301 tariffs related to China’s intellectual property rights and other business practices, and the 232 tariffs threatened on automobiles and parts. Steel and Aluminum Tariffs: As everyone by now knows, effective... Continue Reading

]]>In the current tit for tat environment that overhangs international trade, below is an update regarding the 232 tariffs on steel and aluminum, the 301 tariffs related to China’s intellectual property rights and other business practices, and the 232 tariffs threatened on automobiles and parts.

Steel and Aluminum Tariffs:

As everyone by now knows, effective March 23, 2018, the U.S. imposed a 25% tariff on selected steel products and a 10% tariff on selected aluminum products. The basis for this action was a finding by the Dept. of Commerce that foreign competition had essentially undermined U.S. steel and aluminum production capabilities and so triggered national security concerns. In this context national security equates to economic security. The shorthand reference in this context is 232, the section of the law -The Trade Expansion Act of 1962 – under which the Administration acted.

(2) “Steel” products are defined in the HTS as: (i) 7206.10 through 7216.50, (ii) 7216.99 through 7301.10, (iii) 7302.10, (iv) 7302.40 through 7302.90, and (v) 7304.10 through 7306.90, including any subsequent revisions to these HTS classifications.

Initially, certain traditional U.S. trading partners were exempted, but then not. South Korea reached agreement with the U.S. to revise the free trade agreement between the parties, and so as of May 1, 2018, the affected steel products from South Korea are subject to an agreed upon quota limit, but not the 25% steel tariffs. The aluminum tariff remains in place.

Regarding steel and aluminum products from Argentina, Australia and Brazil, in the Presidential Proclamations Adjusting Imports of Steel and Aluminum issued on May 31, 2018, the successful conclusion of negotiations with these countries was announced and quotas imposed accordingly.

At the same time, our trading partners have been busy. Perhaps not surprisingly, China was the first to act. On March 29, 2018, it published a list of products on which retaliation would be taken against the U.S.’ 232 actions. China’s World Trade Organization (“WTO”) complaint can be found here: China WTO Complaint, and lists the products on which retaliation was immediately imposed.

Next came India which filed at the WTO on May 18, 2018, see India WTO Complaint. The list of products on which retaliation is being taken was provided by way of a revision filed on June 13, 2018 and can be found here: India Product List. India first said retaliation would occur within 30 days and in the subsequent product list filing, the retaliation date was stated as May 18, 2018.

The European Union filed its own WTO complaint with a corresponding list of products on which retaliation would be taken, see EU WTO Complaint, starting on June 22, 2018.

The third country to file on May 18, 2018 was Russia. Its WTO complaint can be found here: Russia WTO Complaint, but no specific products are listed, only the promise that more details will follow. In terms of when retaliation takes effect, Russia said within 30 days of its filing.

Turkey filed next on May 22, 2018, see Turkey WTO Complaint, and included its own list of products on which retaliation was to be applied effective June 21, 2018.

Japan also filed a WTO complaint on May 22, 2018, Japan WTO Complaint, which was supplemented on June 20, 2018, Japan WTO Supplement, but neither filing includes specifics about possible products. Retaliation was to take effect within 30 days.

Finally, Norway has filed its own action to seek consultations with the US over the 232 tariffs, see Norway WTO Consultation Request. Consultations are the first step in the WTO process, and occur prior to filing a complaint. Many U.S. trading partners indicated they have been rebuffed when attempting consultations, so odds are that Norway’s complaint will soon be filed.

As to our NAFTA partners, Canada published a list of products on which retaliation will be imposed effective July 1, 2017. That list can be found here: Canada 232 Retaliation Lists with Table 1 products subject to a 25% surcharge. While the products listed on Tables 2 and 3 are subject to a 10% surcharge. Mexico published its own list of products on which retaliation is taken effective June 5, 2018: Mexico Retaliation Notice.

China and 301:

In much the same way 232 laid the foundation for the U.S. to impose the steel and aluminum tariffs, 301 is another provision of another trade act which permits corrective action against U.S. trading partners, this time under the Trade Act of 1974. In this context, the culprit is China and its practices regarding intellectual property rights and other business actions, as has been widely reported.

Based on Congressional mandate, the U.S. Trade Representative (“USTR”) conducts regular reviews of the state of intellectual property rights throughout the world, and, in the past, typically found China’s practices to be troublesome and nothing more, but the Trump Administration changed policy and decided that punitive tariffs were in order. The imposition of a 25% tariff on selected Chinese goods was announced on June 15, 2018. This action followed the publication by USTR in early April on which retaliation was proposed. The end result is that two lists were published in June when the final decision was announced. The press release itself can be found here: USTR Press Release re China 301 Tariffs. List 1 is published here: USTR China List 1, and List 2 here: USTR China List 2. For products found on List 1, the 25% tariff takes effect on July 6, 2018. For the products on List 2, since they are different from those originally mentioned, they will undergo notice and comment. The relevant dates are as follows:

◄ June 29, 2018: Due date for filing requests to appear and a summary of expected testimony at the public hearing and for filing pre-hearing submissions.

◄ July 20, 2018: Due date for submission of written comments.

◄ July 24, 2018: The Section 301 Committee will convene a public hearing in the main hearing room of the U.S. International Trade Commission, 500 E Street SW Washington, DC 20436 beginning at 9:30 a.m.

◄ July 31, 2018: Due date for submission of post-hearing rebuttal comments.

If your products are on List 2, now is the time to submit comment about why your products are unique, cannot be found in the U.S. or cannot be found at a reasonable cost or in adequate quantities in the U.S.

In response, on June 18, 2018, President Trump announced he directed USTR to identify $200 billion worth of Chinese goods which are to be subject to an additional 10% tariff. See Trade With China Statement. The general consensus is the amount of trade with China does not present $200 billion in additional products on which to impose tariffs. So, how this will be implemented by the U.S. remains unclear. Similarly, the expectation is China will find ways in addition to increased tariffs to make life difficult for American companies, such as delaying visas for business travelers, increasing inspections of and delaying goods arriving at the borders, slowing down the granting of permits and licenses, raising new and different objections to new businesses where Americans are owners, enhancing its protective measures over key/sensitive industries, and other more subtle means to make it difficult/impossible for Americans to do business in China.

232 & Automobiles/Parts:

The third category of additional tariffs is expected to come from this review which was announced on May 23, 2018. Like the steel and aluminum tariff action, the auto and auto parts action is framed in the context of the decline in the production of autos and auto parts equates to a threat to U.S. economic security, and so national security. The public hearing is scheduled to be held on July 19 and 20, 2018. It is expected that once the process is completed, the findings will support imposition of additional tariffs on these products, too.

The European Union 232 steel and aluminum retaliatory tariffs just took effect. Immediately President Trump took to Twitter, continued his attacks on the EU’s trading framework, and mentioned a 20% tariff to be imposed by the U.S. on European-made vehicles. Is there really any doubt as to how the auto and auto parts 232 investigation will come out? President Trump went on to say that European automakers should build their cars in the U.S., see Tweet re EU Tariffs. Perhaps someone in the Administration could point out many of the European auto makers already build many of their models in the U.S. Interestingly, so do many of the Japanese auto makers. Are they next? The only group that seems to be safe is the Korean auto makers, and then only because renegotiations regarding the Korea-U.S. Free Trade Agreement were recently concluded.

]]>http://www.canada-usblog.com/2018/06/26/to-tariff-or-not-to-tariff-that-is-the-question/feed/025% Tariff Imposed in Chinese Goodshttp://www.canada-usblog.com/2018/06/15/25-tariff-imposed-in-chinese-goods/
http://www.canada-usblog.com/2018/06/15/25-tariff-imposed-in-chinese-goods/#respondFri, 15 Jun 2018 17:45:08 +0000https://www.canada-usblog.com/?p=6336The U.S. Trade Representative (USTR) today issued two lists of products on which the U.S. seeks to impose tariffs on goods made in China at a 25% rate. The lists together cover 1,102 tariff lines valued at approximately $50 billion. According to the USTR’s release, the list of products settled on was intended to focus... Continue Reading

]]>The U.S. Trade Representative (USTR) today issued two lists of products on which the U.S. seeks to impose tariffs on goods made in China at a 25% rate. The lists together cover 1,102 tariff lines valued at approximately $50 billion. According to the USTR’s release, the list of products settled on was intended to focus on “products from industrial sectors that contribute to or benefit from the “Made in China 2025” industrial policy,” and include aerospace, information and communications technology, robotics, industrial machinery, new materials and automobiles. Cellular telephones and televisions are not included.

The List 1 can be found here China 301 retaliation – List 1 and List 2 here China 301 retaliation – List 2. The 25% duty results from the recently completed 301 investigation and will be imposed on the products in List 1 starting on July 6, 2018. Those goods are said to be worth approximately $34 billion. The products on List 2, which are estimated to be worth $16 billion, will undergo further review, including public notice and comment, and a public hearing, before the list is finalized. USTR also stated a process will be published to allow companies to seek exclusions for particular products.